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Fed govt failed to inspect higher risk oil wells

WASHINGTON (AP) — The government has failed to inspect thousands of oil and gas wells it considers potentially high risks for water contamination and other environmental damage, congressional investigators say.

The report, obtained by The Associated Press before its public release, highlights substantial gaps in oversight by the agency that manages oil and gas development on federal and Indian lands.

Investigators said weak control by the Interior Department’s Bureau of Land Management resulted from policies based on outdated science and from incomplete monitoring data.

The findings from the Government Accountability Office come amid an energy boom in the country and the increasing use of hydraulic fracturing, or fracking. That process involves pumping huge volumes of water, sand and chemicals underground to split open rocks to allow oil and gas to flow. It has produced major economic benefits, but also raised fears that the chemicals could spread to water supplies.

The audit also said the BLM did not coordinate effectively with state regulators in New Mexico, North Dakota, Oklahoma and Utah.

The bureau has become a symbol of federal overreach to industry groups opposed to government regulations related to oil and gas drilling. Environmental groups say the Obama administration needs to do more to guard against environmental damage.

In the coming months, the administration is expected to issue rules on fracking and methane gas emissions.

The report said the agency “cannot accurately and efficiently identify whether federal and Indian resources are properly protected or that federal and Indian resources are at risk of being extracted without agency approval.”

In response to the report, Tommy Beaudreau, a principal deputy assistant interior secretary, wrote that he generally agreed with the recommendations for improved state coordination and updated regulations.

The report makes clear in many instances that the BLM’s failure to inspect high-priority oil and gas wells is due to limited money and staff. BLM officials said they were in the process of updating several of its policies later this year.

Investigators reviewed 14 states in full or part: Arkansas, California, Colorado, Louisiana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, West Virginia and Wyoming. In Ohio, Pennsylvania and elsewhere, fracking has become increasingly prevalent.

The report said the BLM had failed to conduct inspections on more than 2,100 of the 3,702 wells that it had specified as “high priority” and drilled from 2009 through 2012. The agency considers a well “high priority” based on a greater need to protect against possible water contamination and other environmental safety issues.

The agency had yet to indicate whether another 1,784 wells were high priority or not.

The BLM has developed agreements with some states, which also have jurisdiction over well inspections on federal lands. According to the GAO, it had reached agreements with regulators in California, Colorado, Nevada and Wyoming.

The report said BLM has not reviewed or updated many of its oil and gas rules to reflect technological advances, as required by a 2011 executive order. They include guidance on spacing of wells, which the report said could help maximize oil and gas production.

The bureau acknowledged it had not updated its guidance on oil and gas drainage since 1999 or its guidance on mineral trespass — interference of drilling or mining activity — since 2003.

Congressional investigators found the BLM did not monitor inspection activities at its state and field offices and thus could not provide “reasonable assurance” that those offices were completing the required inspections.

In Pennsylvania, for instance, an Associated Press investigation found the state received 398 complaints in 2013 alleging that oil or natural gas drilling polluted or otherwise affected private water wells. More than 100 cases of pollution were confirmed over the past five years.

“This report reaffirms our concern that the government needs to pay attention to the environment and protect public health and drinking sources from the risks of oil and gas development,” said Amy Mall of the Natural Resources Defense Council.

But Kathleen Sgamma, vice president of government and public affairs at the Western Energy Alliance, a trade group representing energy companies, said the report’s findings show that states are better positioned to regulate oil and gas drilling.

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Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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